Investor optimism over trade is fuelling oil prices amid the easing concerns over the global slowdown and in turn over the global oil demand. So the actual progress in talks does matter for Brent in this context. But this is not enough to fuel further sustainable rally in crude as traders need to see positive developments in the oil market itself to get the barrel out of the market.
In the short-term, Brent could retain the tone but the risk of a downside correction is rising as the $60 level could deter the bulls and give room for a local profit-taking. Besides, the buyers could become exhausted after an aggressive rally since late-December. But the potential pullback will likely be limited as long as investors continue to cheer the warming of relations between the US and China.